Finding professional financial advice online has become more accessible with the growth of digital platforms and services. Now, individuals can connect with financial advisors through many websites, apps and online networks, receiving guidance on topics ranging from retirement planning to investment strategies. These services often offer flexible options, allowing users to choose from robo-advisors that provide automated advice, traditional advisors who can offer more personalized plans and hybrid services that blend those two options.
Robo-Advisors
Robo-advisors are automated platforms that provide financial advice and portfolio management services using algorithms and software, with minimal human intervention. These services appeal to those seeking a hands-off, cost-effective solution for managing their investments, as they often charge lower fees compared to traditional advisors.
To get started with a robo-advisor, you can sign up through a website or app, complete the required questionnaires assessing your financial situation and goals and then deposit funds into your account. The platform will then automatically allocate your investments into diversified portfolios, regularly rebalancing them to stay aligned with your goals.
Additionally, robo-advisors often provide features like tax-loss harvesting and retirement planning tools to enhance your experience.
Popular Robo-Advisors
Robo-advisors are a good fit for those comfortable with technology and looking for a low-cost, automated investment management solution. Here are five common options to potentially consider:
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Betterment: Betterment is ideal for those who want a hands-off investment experience, with features like tax-loss harvesting and retirement planning tools. Though an initial deposit of $10 is required, Betterment has no account minimum for its Digital plan. The fees are 0.25% annually, or $4 per month.
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Wealthfront: Wealthfront requires a $500 minimum for investment accounts and charges a 0.25% annual fee on assets under management. The platform offers features like automated rebalancing, tax-loss harvesting and robust financial planning tools.
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SoFi Automated Investing: SoFi’s automated investing platform has a $1 minimum, and it charges no management fees, only ETF expense ratios. This can make it a good fit for new investors or those looking for a low-cost way to start investing.
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Ellevest: Ellevest is designed to focus on women’s financial needs, offering tailored financial solutions, including retirement planning and financial coaching, in a platform designed specifically with gender considerations in mind. There is no account minimum for Ellevest’s automated investing service, and an Ellevest plan costs $12 a month.
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Schwab Intelligent Portfolios: Schwab requires a $5,000 minimum to start, with no advisory fees, only ETF expense ratios. Tax-loss harvesting is offered, as is 24/7 phone and live chat support.
Traditional Financial Advisors
Traditional financial advisors provide personalized, one-on-one advice on a range of financial topics, including retirement planning, investment strategies, tax planning and estate management. Traditional advisors may also manage investments, create detailed financial plans and adjust strategies as clients’ financial goals evolve.
These advisors typically work with clients of varying income levels and financial complexity, offering tailored advice based on each person’s unique circumstances. Many clients seek traditional advisors for hands-on approach advice that includes regular meetings, customized portfolios and the ability to address complex financial needs. Plus, advisors often offer both in-person and virtual consultations, giving clients flexibility in how they receive their guidance.
To find a traditional advisor online, you can start by using resources like the Financial Planning Association (FPA) directory or the CFP® Board, which helps connect you with
Certified Financial Planners (CFP®s)
in your area. These platforms often provide a convenient way to compare advisor qualifications, specialties and fees, all of which are important to weigh to find the right fit for your financial goals.
SmartAsset’s financial advisor matching tool is also a convenient and easy way to connect with fiduciary financial advisors who serve your area. After taking a survey that touches on your finances and investments, you are matched with financial advisors based on your location or preference for working with remote advisors, as well as the amount of assets you have.
Hybrid Advisors
Hybrid advisors combine the convenience of robo-advisors with the personalized service of traditional financial advisors. These platforms use automated technology to manage investments while offering access to human financial professionals for advice on more complex decisions. Often, this model is a good fit for those who want to keep costs lower than they would be with a traditional advisor but still would like to benefit from personalized guidance when needed.
Hybrid services allow users to automate their portfolios and receive help from credentialed advisors for financial planning. These platforms are often suited for a broad range of investors, from beginners to those who are more experienced, depending on the level of human interaction desired.
Examples of Hybrid Advisors
Below are some popular hybrid advisory services, which offer a combination of automated investment management and access to live financial advisors. Each platform varies in terms of account minimums, fees and the level of advisor interaction:
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Vanguard Personal Advisor Services: With a $50,000 account minimum, Vanguard charges around 0.30% annually for its hybrid service that emphasizes retirement planning. Clients are paired with CFP®s who can provide personalized investment strategies.
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Schwab Intelligent Portfolios Premium: Schwab requires a $25,000 minimum investment and charges a $300 one-time setup fee followed by a $30 monthly subscription for its premium offering. In addition to automated portfolio management, clients receive unlimited access to CFP® professionals.
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Betterment Premium: Betterment Premium has a $100,000 investment minimum and charges 0.65% in annual management fees. Clients can connect with human advisors for help with more complex financial decisions while their investments are automatically managed.
Bottom Line
With many options for financial advice available online, there is a solution for nearly every type of investor. Whether you prefer the low-cost automation of robo-advisors, the personalized guidance of traditional advisors or the flexibility of hybrid services, online platforms offer convenient ways to access professional financial advice. Understanding the different models can help you choose an option that aligns with your financial situation and preferences.
Investment Planning Tips
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A financial advisor can help you analyze investments for your portfolio. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
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Whether you go long or short, you can use SmartAsset’s investment calculator to find out how your nest egg will grow over time.
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